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Business and Economics Journal

ISSN: 2151-6219

Open Access

Analysis of Motivation Issues and Link with Profitability: Case Study of Entrepreneurial Firms in a Rural Cluster in West Bengal, India

Abstract

Soumyendra Kishore Datta and Dibyendu Ghosh

Analysis and assessment of motivation factors of small scale entrepreneurial firms is very important in the context of developing countries where unemployment is at high level. A case study is conducted in the case of fish hook producing small scale clustered firms in West Bengal, India. In this context, a comparative analysis is made of the ranking of various items of motivation as perceived by the respondents in the cluster, reliability of various items of motivation is judged by using Cronbach’s Alpha test and an index of motivation is developed on the basis of principal component technique to find the level of association between motivation index and firm performance level. The results reveal reasonable degree of reliability among motivation items, indicate moderate degree of association between motivation index and per-capita firm profitability. Govt. should take certain steps for promoting motivation and attractiveness of entrepreneurial work among young generation.

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